Tax treaty signed with Israel

A treaty for the avoidance of double taxation has been signed between Israel and Malta. The treaty will enter into effect on completion of ratification proceedings in the two countries.

The treaty signed with Malta includes a clause for the exchange of information between the tax authorities of both countries, based on the model treaty of the OECD.

The tax withholding rates in the country where the payment is made (the country of origin) have been set at 5% of interest payments and 0%-15% of dividends. With regard to royalties and capital gains, taxation will be only in the seller's country of domicile. A company carrying out a construction project in the other country will be charged tax in that country only if the project's duration is over 12 months.